Workforce management (WFM) is a set of processes used to increase team productivity and efficiency.

Implementing a robust workforce management process can help your team feel empowered to make an
impact. A WFM process is a set of techniques to help improve internal processes, automate where
possible, and create a more enjoyable place to work. https://asana.com/resources/workforce-
management

Workforce management (WFM) is the way in which employers strategically allocate people and
resources, track attendance and comply with constantly changing workplace laws and regulations.
Ultimately, the objectives are to optimize productivity and reduce risk. Workforce management means
recognizing the top priorities of an organization and anticipating human capital challenges so that the
proper steps can be taken to mitigate liabilities and maintain efficiency. Workforce Management - What
is WFM? | ADP

Workforce management comprises all the activities and processes needed to manage and maintain a
productive workforce – from budgeting, scheduling, and forecasting to tracking employee time and
complying with regulations. https://www.sap.com/sea/products/hcm/what-is-workforce-
management.html#top-five

Literature Review

Workforce Management (WFM) is a critical organizational function that ensures the alignment of human
capital with business objectives. According to Asana, WFM is primarily about improving team
productivity and creating a more efficient workplace. This definition focuses on the internal processes
that streamline workflows, automate repetitive tasks, and enhance employee experience. A well-
implemented WFM process is portrayed as one that not only boosts operational efficiency but also
empowers employees, making them feel that their contributions are impactful. This emphasis on both
productivity and employee satisfaction suggests that effective WFM can improve overall workplace
morale while optimizing internal systems.

ADP provides a more strategic perspective on WFM by highlighting its role in optimizing resource
allocation and reducing risks. This definition underscores the importance of anticipating challenges
related to human capital, such as compliance with workplace laws and changing regulations. In addition
to improving productivity, WFM also involves recognizing organizational priorities and making informed
decisions about workforce distribution to mitigate liabilities. This broader view of WFM connects
operational efficiency with legal and compliance considerations, suggesting that organizations must not
only focus on internal processes but also be aware of external regulatory pressures.

The SAP definition offers a more comprehensive view of WFM, detailing the various activities involved,
including budgeting, scheduling, forecasting, and compliance tracking. This definition integrates the
operational, financial, and regulatory aspects of WFM, showing that it extends beyond workforce
allocation to encompass the broader management of resources. By covering activities such as employee
time tracking and compliance with regulations, SAP’s definition aligns with the idea that WFM is
essential for maintaining a productive and compliant workforce.
Talent Management is a system that promotes a high-performing workforce, identifies and closes skills
gaps, and implements and maintains programs to attract, acquire, develop, promote, and retain quality
and diverse talent. Talent Management exists to ensure that organizations get the right people with the
right skills into the right position at the right time. https://www.opm.gov/policy-data-oversight/human-
capital-framework/talent-management/

Talent management is how employers recruit and develop a workforce that is as productive as possible
and likely to stay with their organization long term. When implemented strategically, this process can
help improve the overall performance of the business and ensure that it remains competitive. Put
simply, talent management means investing in an organization’s most important resource – its people.
To this end, employers may recruit candidates with highly desirable skillsets, provide ongoing learning
and development opportunities and reward valued team members and encourage them to advance
within the organization. https://www.adp.com/resources/articles-and-insights/articles/w/what-is-
talent-management.aspx

Talent management includes all the ways that organizations bring employees on board, keep them
happy and productive, and help them continue to develop their skills over time. Analysis shows there is
a significant relationship between effective talent management and an organization’s overall
performance. In fact, in a 2018 McKinsey survey, 99 percent of respondents who reported their
company’s talent management was very effective said they outperform their competitors, compared
with 56 percent of all other respondents. And the effects may be cumulative, given that abilities to
attract and retain talent seem to support outperformance as well. What is talent management? |
McKinsey

Literature Review

According to the U.S. Office of Personnel Management (OPM), talent management is a system aimed at
fostering a high-performing workforce by identifying and closing skill gaps. This definition emphasizes
the structured approach organizations must take to ensure they have the right talent with the right skills
in place at the right time. The focus on skills alignment suggests that TM is not just about hiring but also
about continuously refining workforce capabilities to meet evolving business demands.

ADP takes a broader, more employee-centered view, positioning talent management as the process
through which employers recruit and develop a productive workforce that remains with the
organization over the long term. This definition highlights TM as a key strategy for improving business
performance and maintaining competitiveness, emphasizing that an organization’s most important
resource is its people. In this context, talent management goes beyond just filling positions; it involves
nurturing employees through ongoing learning and development, rewarding their efforts, and
encouraging internal advancement.

McKinsey’s definition places a strong emphasis on the impact of effective talent management on overall
organizational performance. According to McKinsey, talent management involves bringing employees on
board, keeping them engaged and productive, and ensuring they continue to develop their skills over
time. McKinsey’s perspective highlights the cumulative effect of strong talent management. Not only
does attracting and retaining top talent support organizational outperformance, but it also creates a
feedback loop where success in talent management leads to sustained competitive advantage.